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DDR5 includes built-in in ECC. However recoverable errors are not reported and it provides slightly less redundancy then ECC due to some of the redundancy budget compared DDR4-ECC is being eaten up by less reliable cells but in total i expect improved reliability over DDR4 non ECC.

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To my understanding for DDR5 on-die ECC is due to the high frequencies the individual dies run at. You are still vulnerable for anything between the RAM to the CPU.

That's correct. Still the likelihood if errors of data at rest is much reduced. Memory controllers might be able to detect a lot of errors between the RAM and CPU due those errors being in the analog domain, while errors in memory are in the digital domain as the signal gets digitised and send over an analog channel.

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